New Mexico Capital Gains Tax Calculator
Calculate your 2026 capital gains tax in New Mexico. New Mexico taxes capital gains at rates up to 5.9%, plus federal taxes.
Original purchase price
Renovations, additions — added to your basis
Agent commissions, closing costs, title & transfer fees
Total Tax
$45,600
22.8% effective rate
Capital Gain
$200,000
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Tax Breakdown
Sale price minus selling costs and all taxes (before any mortgage payoff).
Federal
$33,800
NM State
$11,800
Effective Rate
22.8%
New Mexico Capital Gains Tax
New Mexico taxes capital gains as ordinary income at rates up to 5.9% (on taxable income over $210,000 single or $315,000 joint). Every filer can deduct up to $2,500 of net capital gain, and sellers of a New Mexico business can instead deduct 40% of up to $1 million of that gain. This calculator applies the 5.9% top rate to the whole gain and does not subtract the deduction, so it overstates the tax for most filers.
Long-term: Taxed as ordinary income (up to 5.9%) after the capital gain deduction
Short-term: Taxed as ordinary income (up to 5.9%)
NIIT Applied
The 3.8% Net Investment Income Tax applies because your income exceeds $200,000.
New Mexico Capital Gains Tax Details
Tax Treatment
Tax Type
Taxed as ordinary income
Maximum Rate
5.9%
Available Exemptions
- Federal home-sale exclusion ($250K single / $500K married filing jointly) flows through to the New Mexico return
- Capital gain deduction: the greater of up to $2,500 of net capital gain or 40% of up to $1 million of net capital gain from selling a business (NMSA 7-2-34; not applied here)
- Selling costs and capital improvements reduce the taxable gain
New Mexico Capital Gains Tax FAQ
Official References
- IRS Topic 409: Capital Gains and Losses
Federal capital gains tax guidance
- IRS Publication 523: Selling Your Home
$250K / $500K home-sale exclusion, basis adjustments, and selling expenses
- New Mexico Taxation and Revenue — Income Tax Act (7-2-7 rates, 7-2-34 capital gain deduction)
New Mexico state capital gains rules
This calculator provides estimates. Consult a tax professional for advice specific to your situation in New Mexico.
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